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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
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Information & Inspection Powers: Information Notices: Third Party Notice: Partnerships: Notice given to a partner who is not a relevant partner

You can issue an information notice to a partner for the purpose of checking the tax position of one or more partners (in their capacity as partners). The type of notice you issue depends upon whether or not

  • the partner receiving the notice was a relevant partner, see CH21600, during the period for which you require the information or documents, and
  • the information or documents you require also affect the tax position of the partner receiving the notice in their capacity as partner.

You check the tax position of the partners for a chargeable period. Where there is a change in the members of the partnership you have to consider whether the current partner to whom you will address your notice was a relevant partner for the chargeable period covered by the notice. If they were not, follow the guidance below. If they were, the guidance in CH23720 applies.

Recipient not a relevant partner during the period

If the partner receiving the notice was not a relevant partner during the chargeable period covered by the notice, they are ‘a person other than a partner’ for the purposes of that notice. This means that the special rules in CH23680 apply. That is

  • the notice only needs to say that you need the information or documents for the purpose of checking the tax position of two or more partners (in their capacity as partners) and name the partnership. It does not need to show the names of the individual partners concerned
  • you only need the approval of one of the partners concerned to issue a taxpayer approved notice
  • you only need to send a copy of the notice to one of the partners concerned, and
  • you only need to send a summary of your reasons to one of the partners concerned if you apply for tribunal approval to issue the notice, see CH24160.

The recipient’s appeal rights against this notice are the third party appeal rights detailed in CH23620.